Due to government’s redefinition of price/rate, Feed-In-Tariffs in Taiwan may not have pleased every one (evidenced by previous post of Incentive For Solar (11), but it is not half as disastrous as what had occurred in Spain. Spain’s struggling solar sector has announced, this year, that it will sue its government over two royal decrees that will reduce tariffs retroactively. The leading trading body ASIF and its 500 members endorsed filing the suit before the Spanish high court and the European Commission, alleging that royal decrees 156/10 and RD-L 14/10 run against Spanish and European law. The royal decree 156/10 prevents solar producers from receiving subsidized tariffs after a project’s 28th year while the royal decree RD-L 14/10 slashes the entire industry’s subsidized tariffs by 10% and 30% for existing projects until 2014. Both bills are retroactive, discriminatory, and very damaging to the solar energy sector. The decrees will cut payouts for ground-mounted solar energy projects by 45% this year, killing future investment in the trade and it will also see tariffs drop 5% for small rooftop installations and 25% for large ones. Definitely, this is the experience we want to avoid in the process of designing an optimal Feed-In-Tariffs program. One of the most important factors arised from the Spanish experience is due to its non-optimal level of FIT design, copying Germany’s FIT program when Spain has almost twice as much sunshine as Germany. Here, in the following video clip, Mark Pinto explains the supply glut of solar and Spanish experience: http://www.youtube.com/watch?v=GY_CyMof5O0

Once again, there is much we can learn from those who have gone before us.

One Response to “Incentive For Solar (12)-Feed-In-Tariffs-Spain”

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